Kemp backs Georgia tax break on jet fuel for Delta, other airlines

Gov. Brian Kemp has gotten behind a jet-fuel tax break that could mean a $40 million annual savings for Delta Air Lines and millions more for other air carriers.

Legislation filed by Kemp’s floor leader on Friday would include a small excise tax for 20 years so the state could receive matching money from the federal government ($9 for every $1 the state puts in) for projects at rural airports across Georgia. It is initially expected to raise about $3.6 million a year for the state, but that could increase over time.

Deal made two moves after the session in response: The state stopped collecting the local portion of the jet-fuel tax on July 1, and then later in the month, the governor signed an executive order suspending collections of the state portion of the tax.

Supporters of the tax break say that most other states with major airline hubs have either lower or no taxes on jet fuel. They also say states that eliminated or suspended the tax — such as North Carolina — have seen increased airport traffic and investment, particularly at regional airports.

“I haven’t seen the bill yet, so I don’t know exactly what it does,” Ralston said Friday. “I know that the governor is very committed to strengthening our network of airports in rural Georgia, the smaller airports. They’re great economic development enhancement, and I support them in that regard. We’ll take a look at the bill and let it go through the Ways and Means process, and we’ll see what happens.”